Andy Rubin Is Full Of It -- It Would Be EASY For Google To Give Motorola An Edgehttp://www.businessinsider.com/andy-rubin-is-full-of-it-it-would-be-easy-for-google-to-give-motorola-an-edge-2012-2/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Mon, 19 Mar 2018 11:49:02 -0400Matt Rosoffhttp://www.businessinsider.com/c/4f4c550e6bb3f7d61e00004asymbolsetMon, 27 Feb 2012 23:16:14 -0500http://www.businessinsider.com/c/4f4c550e6bb3f7d61e00004a
It would be easy. It would also violate his duty to the stockholders. A strong multivendor Android ecosystem is in Google's best interest. But they simply must have patents to play in this game.
On the other hand, it would also be easy for Microsoft to give Nokia an edge. Apparently they have, and that was beyond dumb.http://www.businessinsider.com/c/4f4bfffbeab8ea5a6400003cJosh PritchardMon, 27 Feb 2012 17:13:15 -0500http://www.businessinsider.com/c/4f4bfffbeab8ea5a6400003c
It's $3.4B in cash and equivalents, then tax benefits worth $1.7B in 2012 and then $700M annually through 2019. Add the NPV of the tax benefits to the cash, and weigh those against the headline acquisition price. You're left with a *much* more attractive deal, in terms of financial and strategic value.
Alternatively, you could just look at how the tax benefits will effect 2012-2019 EPS estimates. They translate to ~$5 additional EPS in 2012, then ~$2.40 EPS through 2013-2019. Apply a market multiple on those incremental EPS numbers, and you can see why this analysis is worth doing, even for a "tech company".http://www.businessinsider.com/c/4f4bf8e0eab8ea9266000005Doom n' GloomMon, 27 Feb 2012 16:42:56 -0500http://www.businessinsider.com/c/4f4bf8e0eab8ea9266000005
Josh Pritchard, stop spamming the comments with non-sense. You do that kind of math with companies like Kraft or Procter & Gamble, not tech companies.
That $700million that Google supposedly wins is a footnote, or "oooops, we got the phone color wrong" type of mistake.http://www.businessinsider.com/c/4f4befd76bb3f7440400003eSAL-eMon, 27 Feb 2012 16:04:23 -0500http://www.businessinsider.com/c/4f4befd76bb3f7440400003e
Hi,
It is my pleasure to introduce you to Mr. Matt F.U.D. Rosoff. He is very hard at work earning his new middle name.http://www.businessinsider.com/c/4f4be80eecad044a37000070ZosoMon, 27 Feb 2012 15:31:10 -0500http://www.businessinsider.com/c/4f4be80eecad044a37000070
Of course Google isn't going to say they prefer one hardware developer. They naturally should prefer Motorola, and as a Motorola owner, let's hope they do!http://www.businessinsider.com/c/4f4bd86269beddf96200005eJosh PritchardMon, 27 Feb 2012 14:24:18 -0500http://www.businessinsider.com/c/4f4bd86269beddf96200005e
I've already posted this twice today on BI articles referencing Google's "12.5B acquisition of Motorola"... but it'd be REALLY awesome if you all discussed the Google/Motorola acquisition in a more intelligent manner from a financial perspective. Motorola has cash and tax assets that together offset *more than half* of the headline price, before even considering the patents or operating businesses. The cash in the bank is well over $3B, and the tax assets (from years of NOLs) are worth $1.7B to GOOG in 2012, and then $700M annually through 2019. See <a href="http://goo.gl/OGaeL" target="_blank">http://goo.gl/OGaeL</a>